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Old October 29th, 2005, 06:59 AM   #241
hkskyline
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Malaysia Airlines hikes fuel surcharge for international flights

KUALA LUMPUR, Oct 28 (AFP) - Malaysia Airlines, which has been suffering from high oil prices, on Friday announced a third hike in fuel surcharge rates in less than six weeks.

"Given the current level of fuel prices, Malaysia Airlines is compelled to revise the fuel surcharge rates with effect from 15 November 2005," it said in a statement.

Malaysia Airlines raised fuel surcharges on October 10 and September 21.

The national carrier said it would raise its fuel surcharge to 190 ringgit (50 dollars) or by 27.90 percent, from 137 ringgit for travel between Malaysia and Europe, Australia and New Zealand, North and South America, the Middle East and Africa.

Surcharges on tickets sold outside Malaysia for travel from Europe, Australia and New Zealand, North and South America, the Middle East and Africa into Malaysia would be hiked to 50 dollars from 45 dollars, it said.

Surcharges for travel between Malaysia and Asia, from Asia into Malaysia and domestic flights remain unchanged, the airline said.

"Malaysia Airlines continues to monitor the fuel price situation and will take further measures to review the surcharge if necessary," it said.

The airline recently announced one of its worst ever quarterly losses at 280.66 million ringgit in the three months to June after a profit of 26.58 million ringgit a year earlier.

After posting the disappointing result quarterly result, Malaysia Airlines announced an ambitious five-year plan to boost profits by up to 1.0 billion ringgit, which included a management shake up.
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Old October 29th, 2005, 09:50 AM   #242
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Quote:
Originally Posted by musang
is actually in line with the old agreement that MAS/SIA has after the split.. that's y u do not c any other airlines plying KUL-SIN. the old policies also affect SQ operations into any other cities in Malaysia (except for the new MOU that they had with SQ lil brother Silk Air of flying into KCH and Kota Kinabalu..).
Erm, if I'm not mistaken there are other carriers who do the KL-SIN route, for example JAL is one of them.
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Old October 29th, 2005, 10:07 AM   #243
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Quote:
Originally Posted by Subangite
Erm, if I'm not mistaken there are other carriers who do the KL-SIN route, for example JAL is one of them.
yes..and not forgetting..Emirates (EK) and Sri Lanka (UL)
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Old November 1st, 2005, 12:24 PM   #244
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Business Times - 01 Nov 2005

AirAsia launches flights to Cambodia

PHNOM PENH - Malaysia's low-cost carrier AirAsia on Tuesday launched daily flights from Kuala Lumpur and Bangkok to the Cambodian capital Phnom Penh, the company said.

The carrier said in a statement that it was the first low fare, no frills airline in Asia to gain entry into the Cambodia.

'The new routes Phnom Penh-Bangkok and Phnom Penh-Kuala Lumpur are our second air routes to Indo-China after the Bangkok-Hanoi route,' said Tassapon Bijleveld, chief of the carrier's subsidiary Thai AirAsia.

To promote the new routes, AirAsia said it would offer fares as low as US$25 for a one-way trip to Bangkok and US$29 one-way to Kuala Lumpur, through to March 25.

AirAsia was launched as a budget carrier in December 2001 with just two aircraft and has since become a significant regional player, with its business model increasingly imitated by national carriers and a host of new low-cost entrants.

Copyright © 2005 Singapore Press Holdings Ltd. All rights reserved.
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Old November 1st, 2005, 12:34 PM   #245
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Air Asia is a good airline, They should fly Internationally here to Australia from Darwin and Perth at first, Valuair flies to Perth, so why cant JQAsia, Tiger Air or Air Asia do it, we are too considered as SE Asia, but a different continent.
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Old November 2nd, 2005, 08:15 AM   #246
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Quote:
Originally Posted by Gertzy
Valuair flies to Perth, so why cant JQAsia, Tiger Air or Air Asia do it.
Not anymore with the QF takeover. 3K, VF and TR will never fly to Perth (again) as they want to minimise competition with their parent companies ie. QF and SQ.

I personally wouldve liked VF to continue the Perth services though.

BTW wasnt AirAsia talking about flying to CMB from KUL earlier?? What has happened to that proposal??
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Old November 2nd, 2005, 08:37 AM   #247
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Quote:
Originally Posted by lordvader
Not anymore with the QF takeover. 3K, VF and TR will never fly to Perth (again) as they want to minimise competition with their parent companies ie. QF and SQ.

I personally wouldve liked VF to continue the Perth services though.

BTW wasnt AirAsia talking about flying to CMB from KUL earlier?? What has happened to that proposal??
Heard Air Asia had plans for parts of the subcontinent too, not just CMB but also MAA. Hope they'd do it.
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Old November 2nd, 2005, 11:41 AM   #248
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Quote:
Originally Posted by Subangite
Heard Air Asia had plans for parts of the subcontinent too, not just CMB but also MAA. Hope they'd do it.
at the moment..Air Asia is eyeing the Chinese market..
flights will be from Bangkok and Kota Kinabalu( M'sia 2nd LCC hub)..wait till those new Airbus arrive...expect AK to be everywhere in Asian region...

yeah..why dun Awair start Denpasar-Darwin, Perth flight...that would be so cool..
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Old November 2nd, 2005, 11:59 AM   #249
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Quote:
Originally Posted by fairul
at the moment..Air Asia is eyeing the Chinese market..
flights will be from Bangkok and Kota Kinabalu( M'sia 2nd LCC hub)..wait till those new Airbus arrive...expect AK to be everywhere in Asian region...

yeah..why dun Awair start Denpasar-Darwin, Perth flight...that would be so cool..
Read in "The Edge daily" today that Air Asia were seeking approval to fly to Myanmar and Laos. I'm too lazy to put the article up.
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Old November 2nd, 2005, 02:22 PM   #250
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Quote:
Originally Posted by Subangite
Read in "The Edge daily" today that Air Asia were seeking approval to fly to Myanmar and Laos. I'm too lazy to put the article up.
yeah..read it too in local papers ..Myanmar and Laos is the only country missing fro AK destinations..anyway..what happen to the Brunei project?
last few months..AK plans to fly from KUL-BWN ( Bandar Seri Begawan)..still not concrete yet??
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Old November 2nd, 2005, 02:52 PM   #251
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I doubt AirAsia will venture too far beyond its regional borders. The budget model is optimized for flights of 3 hours or less. Australia may be too far for AirAsia to venture into.
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Old November 2nd, 2005, 08:48 PM   #252
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Quote:
Originally Posted by hkskyline
I doubt AirAsia will venture too far beyond its regional borders. The budget model is optimized for flights of 3 hours or less. Australia may be too far for AirAsia to venture into.
Why not? They can fly from Perth/Darwin to Bali or Jakarta before -reconnect their flight to KL/BKK/SG. I remember reading about AirAsia intention to make AWair and Jakarta as their Aus-Asia Hub. So, australia flights i think just a matter of time, especially since AirAsia will replace Boeing 737-300 with A320.

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Old November 2nd, 2005, 09:11 PM   #253
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Quote:
Originally Posted by David-80
Why not? They can fly from Perth/Darwin to Bali or Jakarta before -reconnect their flight to KL/BKK/SG. I remember reading about AirAsia intention to make AWair and Jakarta as their Aus-Asia Hub. So, australia flights i think just a matter of time, especially since AirAsia will replace Boeing 737-300 with A320.

cheers
A flight from Perth to Singapore is already 5 hours long, while Sydney takes 7 hours. These are excessively long for a budget carrier such as AirAsia. Short turnaround times is a major advantage that can significantly reduce costs, hence the optimal schedule is to fly short-haul regional routes.

The problem isn't related to the type of aircraft and its range, but rather the whole business model. Having flights of over 3 hours is simply not economical for budget carriers. Even with a stopover in Jakarta or Bali, getting from the rest of Southeast Asia to Australia in 2 flights is still too far for a low-cost carrier to fly.
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Last edited by hkskyline; November 2nd, 2005 at 09:18 PM.
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Old November 2nd, 2005, 10:09 PM   #254
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Well, the destination doesnt need to be Singapore or KL, it can be Bali where Australians mostly spends their vacation there and Indonesian students that lives in Perth too. Also, if we are talking about minimizing flight time for budget carrier, then it possible to stop over in Jakarta, because flight time from Darwin to Jakarta is about two hours long.

But you right, The business model for AirAsia wont work for Asia -> Australia market because the size of its continent and flight-time from east to west coast is quite long.

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Old November 4th, 2005, 02:27 PM   #255
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Quote:
Originally Posted by hkskyline
A flight from Perth to Singapore is already 5 hours long, while Sydney takes 7 hours. These are excessively long for a budget carrier such as AirAsia. Short turnaround times is a major advantage that can significantly reduce costs, hence the optimal schedule is to fly short-haul regional routes.

The problem isn't related to the type of aircraft and its range, but rather the whole business model. Having flights of over 3 hours is simply not economical for budget carriers. Even with a stopover in Jakarta or Bali, getting from the rest of Southeast Asia to Australia in 2 flights is still too far for a low-cost carrier to fly.

But Bali to Perth is only 3 hours and 15 mins. Even Jakarta - Perth is only about 4 hours plus. These are not too difference from any destinations in China. AWAIR is AirAsia but based in Jakarta. Other alternative routes will be Bali - Darwin, Bali - Cairns, and Bali - Townsville, and Jakarta - Christmas Island (a mere 40 mins flight).
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Old November 5th, 2005, 03:12 AM   #256
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3 hours is too long already. Ryanair and easyJet flights tend to hover around 1-2 hours. Even 2 hours is quite long already for an intra-Europe flight. Even Stansted - Riga is less than 3 hours, and that's probably among the longest routes for Ryanair.
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Old November 6th, 2005, 09:35 AM   #257
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27 Oct 2005
AirAsia Begins Countdown for First Airbus A320 Delivery
40 DAYS and counting ……
Corporate Press Release

Melaka – AirAsia, the leading low fare airline in Asia, today held a launch event to officially kick-off its Airbus A320 campaign. The event, at the Composites Technology Research Malaysia (CTRM) in Melaka, was held in anticipation of the first of up to 100* Airbus A320 entering the airline’s fleet beginning December 2005. Joining the launch proceedings at the state –of- the-art aerospace manufacturing facility is Guest of Honour, YB Dato’ Sri Chan Kong Choy, Minister of Transport, Malaysia. Incidentally this marks YB’s first visit to CTRM.

AirAsia is a new customer for Airbus in Asia - Pacific and the single largest customer for the aircraft in the region. With up to 100* A320s commitment lined up over the next 5 years, AirAsia is on course to becoming the largest LCC in the region.

CTRM is another Malaysian company, with interest in the imminent arrival of the country’s first ever Airbus A320s. It is the single source manufacturer and supplier in Asia for components that goes into parts of the A320’s wing package; Leading and Trailing Edge Panels, Aileron Panels, Underwing Panels, Top Assembly Panels, Moveable Fairings, Spoilers, Fixed fairings and Aft Fixed fairings.

Speaking at the launch, AirAsia’s Group CEO, Dato’ Tony Fernandes said, “We are counting down the days for the A320 deliveries. In another 40 days, AirAsia and Malaysia would be the recipients of the nation’s first A320 to serve Malaysia’s aviation sector.

The A320s will mark a new chapter for AirAsia, as our operations will have one of the most modern and sophisticated aircraft in our service. Not forgetting, the youngest airline fleet in Asia!

We are pleased to launch today’s proceedings at CTRM, the birthplace of the A320’s wing panels. The decision to choose the A320s will greatly contribute to CTRM’s growth as the leading and sole supplier of A320 wing composites in Asia, and ultimately benefiting Malaysia’s Aerospace Industry. It is with this thought that we believe with CTRM’s finesse for aerospace technology advancement, and AirAsia’s commitment to provide affordable low fare travel in Malaysia and the region, that together AirAsia and CTRM would keep Malaysia and Malaysians at the forefront of the aviation industry.”

YB Dato’ Sri Chan Kong Choy addressed, “I would like to congratulate AirAsia for putting Malaysia on the world map as leaders in the low cost aviation industry. Well done to AirAsia, for its excellent track record in promoting and encouraging tourism in this part of the world. I am confident that with its brand new fleet, AirAsia would go even more places and keep the Jalur Gemilang flying high.

I would also like to commend CTRM for its world class technology in aerospace and composites. It is indeed refreshing to see two great Malaysian companies helping and working together to further strengthen Malaysia stance globally.”

According to the Chief Executive Officer, Col (Rtd) Rosdi Mahmud, “I would like to congratulate AirAsia for its new fleet rollout with the Airbus A320. Indeed all of us at CTRM are proud to be building the vital wing composites that would serve the country’s leading low fare airline and its 100* Airbus A320 commitment. CTRM will continue to provide its support to both local and foreign aerospace companies and we hope that CTRM's achievements will help to build up confidence in both the Malaysian public and business sector of the potential that lies within the aerospace business.”

Since the new fleet announcement in December 2004, AirAsia has concluded a USD $ 750 million purchase agreement with CFM International for the CFM56-5B engines to power its A320s. The low fare airline has also signed an OnPointSM Solution engine service agreement with General Electric Company (GE) for the maintenance, overhaul and repair of firm 129 CFM56-5B engines that will power the airline’s new fleet of Airbus A320-200 aircraft.

Renowned for its high dispatch reliability, and fuel savings aerodynamics, the A320 is expected to enter into service beginning Dec 2005 and continue through until 2011. The 180 seat configured A320s will completely replace the single aisle, 148 seat configuration Boeing 737-300s currently operated by the AirAsia Group (comprising AirAsia in Malaysia, Thai AirAsia in Thailand and AWAIR in Indonesia). AirAsia would operate a mixed fleet during this transition period.

CTRM’s participation in the Airbus A320 programme started in 2001 with the first contract awarded to manufacture the leading Edge and Trailing Edge Panels. As a follow order, other packages for the wing was awarded and manufactured by CTRM in Melaka. On 14 th July 2004, at the Le Bourget Paris Air Show, CTRM was awarded an extension for the A320 contract. The extension, worth RM800 million, is for 5 years (2006-2010), and is with the intention to extend the life of the aircraft.

With the extension of the contract, CTRM has been trusted with the responsibility to manufacture wing component a close collaboration with BAE Systems Aerostructure, thus becoming the largest composite wing component supplier for the A320 series of aircraft.
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Old November 7th, 2005, 08:01 AM   #258
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Fast growing AirAsia is poised to soar even higher

BY C. S. TAN

NO one would have expected it. An executive from the music industry and his crew bought AirAsia Bhd with all of two aircraft for RM1.00, and turned it into a multi-billion ringgit airline company.

It was only a matter of time as to when AirAsia's total market value would come alongside that of Malaysia Airlines (MAS), as the former fledgling airline grows at a faster rate and is accorded a higher valuation in its share price.

That has come about sooner than expected – after just four years under new management – AirAsia is almost at parity with MAS. The airlines have a market value of about RM3.8bil each.

AirAsia is still a little behind MAS. AirAsia's market value was RM3.83bil last Wednesday, RM50mil less than MAS' RM3.88bil.

These values are based on AirAsia's share price of RM1.64 and MAS' of RM3.10 last week.

This matching of market value is mainly due to the 34% decline in MAS' share price from its 52-week high of RM4.72.

This had partly followed the announcement of a loss of RM280mil in its latest quarter.

AirAsia's share price was also buffeted by high oil prices, but positive news flow lifted its price.

Its fuel costs were recently hedged against a crude oil price of US$48 a barrel, and the Government gave it tax allowances for capital expenditure, an incentive that's also given to other airlines.

These events were well received by investors.

Interestingly, AirAsia's market value is now more than twice that of DRB-HICOM Bhd, which had sold off the airline in 2001.

AirAsia is growing to such a scale that it is the size of some industries. It is buying 60 new planes for US$2bil (RM7.5bil). This will be achieved without any direct financial aid from the Government.

It adds a new dimension to the airline industry that is all the larger now that the country has two regional-sized airlines.

The lesson from AirAsia is that entrepreneurs like its CEO, Datuk Tony Fernandes, should be encouraged.

It is the same experience in other countries in the region where entrepreneurs have built large enterprises to complement the government-linked companies.



Ringgit heads back to RM3.80

It is very difficult to forecast short-term movements of currency exchange rates, and to get such forecasts right most of the time.

Even Warren Buffett, the most famous investor, got on the wrong side of currency futures, having bet that the US dollar would drop.

That has become everyone else's problem. The dollar had been gaining strength in recent months as the US Federal Reserve continued to raise interest rates.

The dollar rose again last week after rates were raised to 4%. This nudged funds to flow into the US for the relatively higher yield.

As a result of that, other currencies, including the ringgit, have been weakening against the dollar.

The ringgit had been pegged at RM3.80 to the dollar, and after the peg was abandoned in favour of a managed float in July, it initially traded at about RM3.75.

Widely believed to be under-valued, the ringgit is expected to appreciate by about 5% within a year.

So far, it has been moving backwards instead, and RM3.775 of it now changes for a dollar.

The ringgit has been allowed to weaken as currencies in competing countries have similarly drifted lower against the dollar.

If the ringgit strengthened against the dollar and other currencies, Malaysia's export goods would become relatively more expensive.

For the moment, there's no relief for Malaysians in their purchases of imported consumer or industrial goods.

The imported component of inflation, including petrol prices, could rise further.
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Old November 10th, 2005, 04:13 PM   #259
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What amazed me is that Tony and his AirAsia also bought AWAir almost two years ago for less than 2 dollars and AWair is now already a strong player in Indonesia market after just a year they resumed the operation. I salute mr Tony fernandez.

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Old November 12th, 2005, 03:03 AM   #260
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AK's latest Airbus

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